MINNEAPOLIS, MN – Hunt Real Estate Capital, a division of ORIX Real Estate Capital, has provided Fannie Mae DUS Conventional Multifamily Loan of $ 43 million to refinance Ironclad Apartments, a medium-sized, 172-unit community in Minneapolis, Minnesota, which debuted in 2019.
The loan refinances building debts of a bank with which the borrower built Ironclad and a neighboring hotel from 2017.
"We were proud to work with the sponsor and Lighthouse Advisors' Rohit Narayanan to complete this refinancing of Fannie Mae," said Nicholas Diamond, Hunt's vice president. "This was the sponsor's first agency deal and the first multi-family project in over two decades, and we were humble to be selected as a partner for this company. With the new structure, Ironclad is well positioned to take advantage of agency funding for the coming Years. "
In February of this year, the transaction was originally supposed to be carried out as Fannie Mae Multifamily Near-Stabilization. After the COVID-19 crisis and subsequent market disruption, Fannie put the program on hold but was able to work with Hunt to quickly move to the traditional option.
The $ 43 million loan has a low fixed interest rate and has a ten year term of three years followed by a 30 year amortization schedule. In addition to the repayment of building debts with inexpensive capital at a fixed rate of interest, the deal provides for substantial disbursement proceeds for the sponsors of approximately USD 2.1 million.
The Ironclad Apartments are a Class A hotel with high quality amenities and two commercial units. Due to the high quality of the asset and its prime location, Ironclad was able to successfully lease and stabilize during the summer months despite the challenges posed by the pandemic.
Source: Chasing real estate capital